Monday, June 14, 2010

AP: Romanian PM cuts pensions of high earners

June 11, 2010

BUCHAREST, Romania --Romania's prime minister says he's slashed the pensions of former generals, scientists and other top civil servants to reduce this central European country's burgeoning budget deficit.

Emil Boc says that as of Friday, the highest monthly pension a former state employee can receive is 37,000 lei (euro8,800 euros; $10,600). The average pension is 710 lei (170 euros; $205).

Rumors widely circulate that some top earners receive huge payouts, but Boc offered no figures.

Boc says the cuts must be made to meet the demands of a multibillion dollar loan from the International Monetary Fund.

The move will also be popular among Romania's masses because many high earners were once senior figures in regime led by Nicolae Ceausescu. 

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